GUIDANCE SOFTWARE INC. is recognized worldwide as the industry leader in digital investigative solutions. Its EnCase platform provides the foundation for government corporate and law enforcement organizations to conduct thorough network-enabled and court-validated computer investigations of any kind such as responding to eDiscovery requests conducting internal investigations responding to regulatory inquiries or performing data and compliance auditing - all while maintaining the integrity of the data. Validated by numerous courts corporate legal departments government agencies and law enforcement organizations worldwide EnCase has been honored with industry awards and recognition from eWEEK SC Magazine Network Computing and the Socha-Gelbmann survey. GUIDANCE SOFTWARE, INC. has a market cap of $87.02 million; its shares were traded at around $3.73 with and P/S ratio of 0.95.
Highlight of Business Operations:Product revenues decreased by $3.7 million, or 35% for the three months ended June 30, 2009 over the same period in 2008 and decreased by $6.3 million, or 29% for the six months ended June 30, 2009 over the same period 2008. Product revenue decreased primarily due to a $3.5 million and a $6.6 million reduction in EnCase® Enterprise license revenues for the three and six months ended June 30, 2009 and 2008, respectively. The decrease in EnCase® Enterprise license revenues was due to the challenging global economic environment and resulting negative impact in customers purchases. The sequential decline was larger than normal seasonal patterns and we experienced declines in all geographic regions.
Services and maintenance revenues decreased by $1.4 million, or 13% for the three months ended June 30, 2009 over the same periods in 2008 and decreased $1.9 million, or 9% for the six months ended June 30, 2009 over the same period in 2008. Professional
services revenues decreased by $1.5 million, or 41% and $2.8 million, or 36% for the three and six months ended June 30, 2009 over the same period in 2008, respectively, due to reduced demand for both implementation services and eDiscovery services as a result of the decline in sales compared to the prior year. Training revenue decreased by $0.5 million, or 21% and $1.3 million, or 26% for the three and six months ended June 30, 2009 over the same period in 2008, respectively, due to the reduced availability of travel and training budgets by our customers. During the six months ended June 30, 2009 we experienced an increased number of customers participating in our On Demand web enabled training courses which has provided a travel free alternative to our customers. Maintenance revenue increased by $0.6 million, or 13% and increased $2.2 million or 25% for the three and six months ended June 30, 2009 over the same periods in 2008, respectively, as a result of an on-going increase in our installed product base and high annual renewal rates by customers desiring continuing maintenance support on our products.
Read the The complete ReportGUID is in the portfolios of PRIMECAP Management.